Indian Railways Catering & Tourism Corporation Ltd., New Delhi V. Dy. CIT, New Delhi

ITA 3738/DEL/2008

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58477 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-01-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 22-12-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SALIL MISHRA
• Assessee Lawyers: P N SHASTRY
• Keywords: Opportunity of being heard

Judgement Text

ITA NO. 3738/DEL/2008 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 3738/DEL/2008 A.Y. : 2004-05 M/S INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED, 9 TH FLOOR, BANK OF BARODA BUILDING, 16, PARLIAMENT STREET, NEW DELHI 110 001 MR. SAURAV AGRAWAL, ADVOCATE, HOUSE NO. 2, REAR ENTRY, GROUND FLOOR, NIZAMUDDIN EAST, NEW DELHI 13 (PAN : AAAC17074F) VS. DCIT, CIRCLE - 11, NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. M.P. RASTOGI, ADV. AND SHRI P.N. SHASTRY, CA DEPARTMENT BY : SH. SALIL MISHRA, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 15.10. 2008 PERTAINING TO ASSESSMENT YEAR 2004-05. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCO ME TAX (APPEALS) ERRED IN AFFIRMING THE ORDER OF THE DY. C.I .T. WHEREBY A SUM OF ` 20,23,042/- WAS ADDED IN THE INCOME OF THE A SSESSEE ON ACCOUNT OF DIFFERENCE IN THE TDS CERTIFICATES. ITA NO. 3738/DEL/2008 2 3. IN THIS CASE, IT WAS FOUND BY THE ASSESSING OF FICER DURING THE RECONCILIATION OF TDS CERTIFICATES FILED BY THE ASSE SSEE ALONGWITH THE RETURN OF INCOME THAT THE ASSESSEE HAD CLAIMED CREDI T FOR TDS AMOUNTING TO ` 1,31,26,108/- ON THE BASIS OF TDS CER TIFICATES AS PER WHICH THE INCOME EARNED WAS ` 30,17,73,815/- WHEREAS THE INCOME BOOKED IN THE ACCOUNTS WAS ONLY ` 29,97,50,773/-. ON BEING CONFRONTED THE ASSESSEE EXPLAINED THAT THE DIFFERE NCE IS ONLY DUE TO THE DIFFERENCE IN ACCOUNTING SYSTEM OF THE RAILWAYS THAN THAT OF THE ASSESSEE. ASSESSING OFFICER DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE AND INVOKED THE PROVISIONS OF SEC. 199 OF THE IT ACT AND HELD THAT THE CORRESPONDING RECEIPT HAS TO BE ASSESSED AS PER THE CREDIT OF TDS ALLOWED. THE ASSESSEE HAS BEEN ALLOWED CREDIT O F ` 1,31,26,108/-, CORRESPONDING INCOME OF ` 30,17,75,815/- HAS BEEN B ROUGHT TO TAX BY ADDING THE DIFFERENCE AMOUNT OF ` 20,23,042/-. 4. THE MAIN ARGUMENT BEFORE THE LD. COMMISSIONER OF I NCOME TAX (APPEALS) MADE BY THE ASSESSEE WAS THAT RELEVANT P ORTION OF INCOME REPRESENTING THE DIFFERENCE BETWEEN THE AMOUNT CONS TITUTED IN THE TDS CERTIFICATES AND THAT INCLUDED IN THE BOOKS OF A CCOUNT FOR THE RELEVANT YEAR, MUST HAVE ALREADY BEEN DECLARED BY I T IN THE EARLIER ASSESSMENT YEAR I.E. 2003-04. HOWEVER, THE SAME WA S NOT SUBSTANTIATED. LD. COMMISSIONER OF INCOME TAX (APPE ALS) FINALLY UPHELD THE ORDER OF THE ASSESSING OFFICER IN THIS REGARD. 5. AGAINST THE ABOVE ORDER OF THE LD. COMMISSIONER O F INCOME TAX (APPEALS), THE ASSESSEE IS IN APPEAL BEFORE US. 6. WE HAVE HEARD THE RIVAL CONTENTION IN LIGHT OF T HE MATERIAL PRODUCED AND PRECEDENT RELIED UPON. ITA NO. 3738/DEL/2008 3 7. LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE AD DITION HAS BEEN MADE IN THIS CASE, BECAUSE THE ASSESSEE HAS NOT BEEN ABLE TO SUBMIT THE NECESSARY RECONCILIATION ON TDS CERTIFICATES IN THIS CASE. HE REQUESTED THAT THE ISSUE MAY BE REMITTED TO THE FIL E OF THE ASSESSING OFFICER TO ENABLE THE ASSESSEE TO SUBMIT THE RECONC ILIATION. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS. IN OUR CONSID ERED OPINION, INTEREST OF JUSTICE WILL BE SERVED, IF THE MATTER I S REMITTED TO THE ASSESSING OFFICER TO CONSIDER THE ISSUE AFRESH, IN LIGHT OF THE RECONCILIATION BEING SUBMITTED BY THE ASSESSEE. N EEDLESS TO ADD THAT THE ASSESSEE SHOULD BE GRANTED ADEQUATE OPPORTUNITY OF BEING HEARD. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16/1/2012, U PON CONCLUSION OF HEARING. SD/- SD/- [ [[ [I.P. BANSAL I.P. BANSAL I.P. BANSAL I.P. BANSAL] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 16/1/2012 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES